Shaping Tomorrow Table of Contents

ANNUAL REPORT 2015

SHAPING TOMORROW TABLE OF CONTENTS

LETTERS TO THE COMMUNITY 3

BOARDS & COMMITTEES 7

IT’S BLUE SKIES FOR THE BLUE LINE 15

THE FUTURE IS NOW 20

FAST FACTS 21

FINANCIAL SUMMARY 22

1 MISSION To improve the quality of life for everyone in the greater Charlotte region by providing outstanding community-wide public transportation services while proactively contributing to focused growth and sustainable regional development.

2 LETTERS TO THE COMMUNITY

3 LETTERS TO THE COMMUNITY WE’RE DRIVING THE FUTURE, TODAY A message from MTC Chair and Charlotte Mayor, Daniel Clodfelter

2015 marked an additional hours of bus service. In addition, MTC policies eventful year for CATS recommend a fare increase every two years to ensure and the Metropolitan that fare revenues keep pace with inflation and reflect a Transit Commission fair-share contribution by riders to the costs of operating (MTC), as we worked to the transit system. MTC members approved a proposed advance transportation 20-cent fare increase which was effective July 1, 2014. choices and transit- oriented development in To keep us on track to realize our vision, the MTC also Charlotte. unanimously approved the 2015 federal legislative agenda. The agenda’s emphasis for 2015 included Planning for tomorrow continuation of federal resources for the build-out of starts with maximizing the 2030 Transit Corridor System Plan and supporting the opportunities we reauthorization of the federal surface transportation have today. In 2015, program. MTC Chair and Charlotte the MTC used our most Mayor, Daniel Clodfelter important capital – new Additionally, the MTC supported the City Manager ideas and relationships – in tapping a new leader for the largest transit system to shape a bright future for rapid transit and light rail in between Atlanta and Washington, DC. After an intensive the Charlotte region. search, CATS welcomed John M. Lewis as the new Chief Executive Officer. His leadership will be critical as we CATS has continued to build out the LYNX Blue Line complete the LYNX Blue Line Extension, the LYNX Blue Extension, which upon completion will connect South Line Station Capacity Project, start phase two of the Charlotte through Center City and out to the University CityLYNX Gold Line and improve our overall service. area. 2015 also brought the opening of the first phase of CityLYNX Gold Line, the city’s vision to connect east Throughout the year, the MTC was challenged to think Charlotte and west Charlotte while also linking to all differently on how to seek innovative partnerships with current and future rapid transit lines. The city also the private sector to advance the 2030 Transit Corridor solidified our transit-development partnership with System Plan. Moving forward, the city must work closely NCDOT and USDOT for the critical infrastructure to with regional local governments and state officials to support the Charlotte Gateway Station project through develop strategies that empower us to implement public- the award of a TIGER grant from USDOT. private partnerships locally and seek creative financing that leverages existing public investment. Our ongoing financial reality – that municipal, state and federal governments continue to operate under I have no doubt that with the right partners and constrained budgets – compels us to make the most unwavering commitment we can reach our goal of a of every funding opportunity. The MTC approved the comprehensive, prosperous regional transit system FY2016-2017 Transit Operating Budget and the FY2016- that supports job creation, sustainability, and economic 2020 Community Investment Plan. The Operating development, while also meeting the daily mobility Budget reflects a modest sales tax recovery, includes needs of our residents and visitors. operation of the CityLYNX Gold Line service, and 5,000 4 GREAT IDEAS ARE MOVING FORWARD A message from CATS CEO, John Lewis, Jr.

Let me begin by spring, and we began construction on the retaining thanking everyone for walls, bridges, and roadbeds. We also received four the warm welcome I new light rail vehicles; and each vehicle successfully have received since completed their 1,000 miles of testing. beginning my journey as the new CATS Chief In July 2014, we began the construction phase Executive Officer. of the LYNX Blue Line Station Capacity Project. It’s been a smooth CATS and the City of Charlotte received an $18 transition, and I want million Transportation Investment Generating to thank Interim CEO, Economic Recovery III (TIGER III) grant from the John Muth for his U.S. Department of Transportation for capacity role in guiding the enhancements along the LYNX Blue Line, increasing organization over the the number of power substations and lengthening last eight months of some platforms to accommodate three-car trains. CATS CEO, John Lewis, Jr. FY15. We anticipate having this project completed by early 2016. I’m pleased to report that your transit system has enjoyed many successes, approvals and accolades Our partners in the City of Charlotte’s Engineering since our last annual report. We have passed some and Property Management Division continued to exciting milestones in fulfilling the promise made in advance the CityLYNX Gold Line Streetcar Project. 1998 – to shape the Charlotte area’s future around Phase I, which operates from Time Warner Cable more efficient, accessible, and wide-ranging transit Arena to Novant Health Presbyterian Hospital, that greatly contributes to the quality of life. experienced some construction delays, but through an aggressive recovery schedule we were able to The Blue Line Extension, from Seventh Street get back on track and began testing in March. The in Uptown to UNC-Charlotte, kept pace with its CityLYNX Gold Line service went through a series of promise for progress as we continued to advance safety tests, certifications, and simulated operations the project and maintain the schedule and budget. as we prepared to launch the service in early FY15. Major utility relocations were completed by early

5 Looking to the future, we continued to seek funding CATS received FTA Region 4’s Superstar Award opportunities to advance the next phase of the for a transit agency consistently demonstrating CityLYNX Gold Line. In February, we received outstanding transit service in an area with a notification from the FTA that Phase II of this project population over 200,000. This award reflects our was earmarked for $75 million in Small Starts excellence in bus, paratransit, light rail, and vanpool Funding. This represents a 50 percent federal services and reflected CATS’ expansion projects, share for the Phase 2 extension of the Streetcar including light rail expansion and streetcar service Project. The City of Charlotte is funding the $75 initiation. Congratulations to all our employees and million local share of the $150 million project. contractors for their dedicated work.

Staff also started the public process to review and There’s no doubt last year’s enthusiasm, hard develop an alignment for the Southeast Corridor/ work and innovative thinking propelled us in the LYNX Silver Line. The study officially began in directions we needed to go. To get from here to February with public meetings scheduled for early there, it will take all of us working together to cast FY16. The study is anticipated to be complete by the die, model our ideals, and strategically shape the end of June 2016. CATS’ legacy far into the future.

As the year flew by, the MTC approved the FY2016-17 Operating Budget and FY16-2020 Community Investment Program (CIP). Both were affected by, BLE construction, implementation of Phase I of the CityLYNX Gold Line Streetcar service, and our recently assumed management of the Charlotte Transportation Center. Despite reductions in key sources of income and fluctuating fuel costs, we continued to recover financially from the recession, focusing on maximizing assets and providing core services to the community.

6 BOARDS AND COMMITTEES

Metropolitan Transit Commission

The Metropolitan Transit Commission (MTC) is CATS’ governing board and is responsible for reviewing and recommending all long-range public transportation plans. The MTC reviews the transit system’s operating and capital programs and sets policies that guide the transit system’s use of public monies. The MTC is composed of voting and non-voting members. The voting members are the mayors and managers of the City of Charlotte; Mecklenburg County; and the six towns in Mecklenburg County: Cornelius, Davidson, Huntersville, Matthews, Mint Hill and Pineville; and a board member from the North Carolina Department of Transportation. To ensure regional involvement, the MTC includes five non-voting members representing local governments outside of Mecklenburg County and one non-voting member from the South Carolina Department of Transportation.

Pictured from left: Jill Swain, Mayor of Huntersville; Bill Thunberg, Lake Norman Transportation Commission; John Woods, Mayor of Davidson; Daniel Clodfelter, Mayor of Charlotte; Ralph Messera, Matthews Designee; Dena Diorio, Mecklenburg County Manager; and Chuck Travis, Mayor of Cornelius.

Not Pictured: Trevor Fuller, MTC Chairman and Mecklenburg County Commission Chairman; Anthony Roberts, Cornelius Town Administrator; Greg Ferguson, Huntersville Town Manager; Hazen Blodgett, Matthews Town Manager; Ted Biggers, Mayor of Mint Hill; Brian Welch, Mint Hill Town Manager; Jack Edward, Mayor of Pineville; Hayes Brigman, Pineville Town Administrator; John Collett, NCDOT Representative; John Bridgeman, Mayor of Gastonia; Bobby Kilgore, Mayor of Monroe, Greg Demko, Interim Monroe City Manager; Douglas Echols, Jr., Mayor of Concord; Miles Atkins, Mayor of Mooresville; Erskine Smith, Mooresville Assistant Town Manager; Ron Carlee, Charlotte City Manager; James Taylor, Mayor of Matthews; and Leamon Brice, Davidson Town Administrator.

7 BOARDS AND COMMITTEES

Citizen Transit Advisory Group The Citizens Transit Advisory Group (CTAG) reviews long-range transit system planning and proposed operating and capital programs from the community’s perspective and makes recommendations to the MTC. This advisory board is made up of members of the community appointed by the Mecklenburg County Board of Commissioners, the Charlotte City Council, each of the six towns, and the Charlotte-Mecklenburg Board of Education. It may include no elected officials, and its members serve staggered two-year terms.

Transit Services Advisory Committee The Transit Services Advisory Committee (TSAC) reviews, makes recommendations, and provides input into short-range transit operations. The committee focuses on day-to-day operations of the transit service to ensure that it meets the needs of the community. It makes recommendations to the MTC on issues within its sphere of interest and acts as a vehicle to promote public involvement on short-term transit planning. TSAC is made up of representatives appointed by the City of Charlotte, the Mecklenburg County Board of Commissioners, and the six towns.

Public Meetings Meetings are held at:

Charlotte-Mecklenburg Government Center Citizens Transit Advisory Group 600 East Fourth Street Third Tuesday of months determined by CTAG Charlotte, NC 28202 7:30 to 9:00 am – Basement Level, CH-14

Metropolitan Transit Commission Transit Services Advisory Committee Fourth Wednesday of each month Second Thursday of each month 5:30 to 7:30 pm – Room 267 4:00 to 5:30 pm – Basement Level, CH-14

8 Leadership Team CATS’ Leadership Team is charged with managing the day-to-day business of the organization. It is made up of managers from each CATS division: Executive, Finance, Development, Marketing and Communications, Bus Operations and Planning, and Rail Operations and Facilities.

Pictured from left to right: Olaf Kinard, Director of Marketing, Communications and Technology; Dee Pereira, Chief Transit Financial Officer; John Muth, Deputy Director; John M. Lewis, Chief Executive Officer; Gracie Myers, Transit Human Resource Manager; John Joye, Senior Assistant City Attorney.

Back Row: Levern McElveen, General Manager of Safety & Security; David McDonald, Transit Planning Manager; Arlanda Rouse, Civil Rights Officer, Larry Kopf, Chief Operations Planning Officer; Allen Smith, General Manager of Rail Operations and Facilities; and Paulus Ford, Executive Assistant to the Chief Executive Officer.

9 POWERED BY PEOPLE

As our options for getting from Point A to Point B have grown, so have our ridership numbers. Although overall ridership was down by 1.4% in FY15, CATS carried over 25.5 million customers last year, reflecting a 10.3 percent increase in riders since 1998. The LYNX Blue Line alone whisked more than five million people to work and play. Multiple construction projects, detours, and low gas prices negatively affected several high ridership bus routes, but Express Bus Service was up 5.7% over last year. We’ll continue to fine-tune all operations to ensure a great experience for all.

10 NEW ROUTES TO MOVE PEOPLE FORWARD Outlet shopping. The airport. And much, much more. CATS makes it possible to get virtually anywhere you’re looking to go. In 2014, we expanded Route 55 to take people and their pocketbooks to Charlotte’s newest shopping destination – the outlets off I-485 in Steele Creek. This service adjustment resulted in a 13.7 percent increase in ridership on Route 55 over the previous year. When two new direct routes, 590 and 591, started winding their way to the airport, over 98,000 passengers boarded in the first year. The Route 590 Airport Connector expanded service by picking up riders every 30 minutes, seven days a week starting at 4:50 a.m. at the Northlake Mall Park and Ride. The Route 591 Airport Connector now serves LYNX Blue Line Stations at Archdale, Tyvola and Woodlawn, also operating every 30 minutes, seven days a week, starting at 4:50 a.m. from the Archdale Station.

In addition to moving people, we continued to move our fleet into the future by purchasing ten new 40 foot buses and 20 paratransit buses and minivans. The future is definitely now.

11 Preventable Accidents in FY2015 (per 100,000 miles) LYNX BUS STS 0.59 0.23 0.44

12 CONTINUED PROGESS FOR BLUE LINE Following its official groundbreaking ceremony in late July 2013, the LYNX Blue Line Extension has leapt forward toward its highly anticipated 2017 service start with construction activities ranging from utility relocations, to roadway work to retaining walls.

Track the Future Today The LYNX Blue Line Extension (BLE) will extend the existing Blue Line light rail line that currently carries passengers from the I-485/South Boulevard Station to Center City Charlotte. The new BLE will transport riders from Center City’s Seventh Street Station through the North Davidson historic arts district and University City area to the University of North Carolina (UNC) Charlotte campus, creating an 18.6-mile north/south rapid transit line with 11 new light rail stations.

Construction was in full swing during the year as work continued on infrastructure projects along the corridor that entailed road, sidewalk, bike lanes and water main Construction also includes bus bays and a pedestrian improvements. bridge connecting the parking garage to the north end of the station platform. The University City Boulevard parking In November, construction began on the J.W. Clay garage will have six levels and approximately 1,500 parking Boulevard and University City Boulevard parking garages. spaces and 24 covered bicycle spaces. These parking decks will be easily accessible from both I-85 and I-485 and are two of the largest park and ride There are ten bridges that are part of the alignment and by facilities along the LYNX Blue Line Extension. The J.W. early spring, seven of them were under construction. The Clay Boulevard parking garage will have five levels with bridge at the I-85 Connector and University City Boulevard 800 parking spaces and 14 covered bicycle spaces. was the first to have girders installed. Girders have also been installed across Toby Creek approaching the UNC Charlotte Main Campus, and at the bridge between 12th and 16th Street near Uptown..

By mid-summer, some stations were beginning to take shape, including Old Concord and Parkwood Stations.

After a cross-country trip from California to North Carolina Car No. 121, the first of 22 new light rail vehicles was delivered to the South Boulevard Light Rail Maintenance Facility on October 27. Four new light rail vehicles were received during FY15 and each will undergo at least 1,000 hours of testing to ensure that all functions operate as specified.

13 Art-in-Transit Program As CATS continues to expand transit options in the area, the Art-in-Transit Program strives to enhance the rider’s experience by integrating public art into each capital improvement project. This past year, thirteen commissioned artists were creating works for the Blue Line Extension walls, bridges, stations, park and ride facilities and elevators. By the end of the fiscal year, all BLE artists had begun providing digital files for integrated art that would initiate the “samples” process between the contractor and the artists. Once the artists approve samples, the contractors can begin fabrication of windscreen art glass, metal column cladding art, and concrete that incorporates artists’ designs. As BLE civil construction progressed, Carolyn Braaksma’s approximately four miles of art retaining walls continue to be built on site along the alignment. Thirteen of these walls were completed with the Advanced Utilities Package. In Civil B/C four walls with the artist’s Calico design and four bridge walls with the artist’s Trap Plant and Leaf designs were built.

14 IT’S BLUE SKIES FOR THE BLUE LINE

Since it opened in 2007, the LYNX Blue Line has generated over $1.45 billion in actual and proposed private development. Along the way, the Blue Line has invigorated South End by helping generate 20,290 jobs and bring customers to more than 100 small businesses adjacent to the line. In fact, the landscape around the line has changed dramatically as apartment complexes stretch skyward and stores and restaurants overflow with people, bands and the music of conversation. The economic impact is estimated to be $1.8 million annually.

And there’s no stopping us now. In late 2011, the U.S. Department of Transportation awarded CATS an $18 million Transportation Investment Generating Economic Recovery (TIGER) III grant. CATS earmarked the funds for the “Blue Line Station Capacity Expansion Project” to build three-car platforms at some stations and seamlessly upgrade traction power substations. The expansion project will help us meet current ridership needs and upgrade the Blue Line’s capacity to meet the throngs of Uptown special event riders attending Carolina Panthers, Charlotte Knights and Charlotte Hornets games, as well as the NASCAR Hall of Fame, museums, festivals and more.

15 SHAPING TOMORROW MEANS EVOLVING TODAY

The Metropolitan Transit Commission adopted the 2030 Transit Corridor System Plan in 2006 as a 30-year guide for growth of the region’s transit options. Economic conditions in the years since have prompted us to update this long-range plan. In addition to an evolving economy, funding awards by the Federal Transit Administration (FTA) and the North Carolina Department of Transportation (NCDOT) have changed in the years since the plan’s adoption. Other changes include Norfolk Southern’s recent release of requirements for potential passenger rail on their lines, which may impact the Red Line. The Silver Line on Independence Boulevard is being revisited to determine the alignment, and Charlotte Gateway Station, a multimodal facility, may be developed as a P3 project.

To expand our view of funding possibilities over the long term, The Metropolitan Transit Commission’s Transit Funding Working Group continued to identify and build awareness of funding challenges facing the 2030 Transit Corridor System Plan. Working Group members participated in an Infrastructure Financing Forum on October 28, 2014 in conjunction with the SmartRail Conference to hear from other communities about Public Private Partnerships (P3s) and other alternative funding options.

CityLYNX Gold Line

Landsdale Dr & Rosehaven Dr N

E S as h tw a a r 85 y o D n r Winterfield Place A Eastland CTC Connecting east and west m i ty R Charlotte with destinations d Darby Acres LYNX Red Line throughout Uptown, construction Sheridan Dr

Eastway Crossing of the CityLYNX Gold Line began Eastway Dr

in December 2012 and Phase n Briar Creek Rd

S i ta te s Rosa Parks CTC sv 1 opened July 14, 2015. The il n 77 le Morningside Dr A Arnold Dr ve e

t S x e

n v CityLYNX Gold Line, often called Montana Dr E A o l e a ce Blv y v tr en d B r A n nd

T d e e V e e o p a o eterans P C e t N kw d n r ti a In e i P the “streetcar,” is critical to s F L LaSalle St o rd The Plaza R e ark d u connecting key neighborhoods, l

B Russell Ave Hawthorne at X Barnhardt workplaces and educational N 74

Y Booker Ave & Oaklawn L institutions to create a city center Sunnyside Ave

with an integrated transportation French St E 7th St system of pedestrians, bikes, Johnson C. Smith University Hawthorne & 8th yon St Mint St Bruns Tr CTC/Arena Hawthorne & 5th St Trade St Irwin motor vehicles, transit, parking Johnson & W Charlotte Gateway Station

Davidson St McDowell St CPCC Hawthorne Elizabeth & R Wesley Heights andolph Rd LEGEND and land development. This 1.5 277 CityLYNX Gold Line CityLYNX Gold Line Stops mile service features six stops from CityLYNX Gold Line Phase 2 CityLYNX Gold Line Phase 2 Stops ales K in gs CityLYNX Gold Line Future CityLYNX Gold Line Future Stops D Center City to Central Piedmont r LYNX Blue Line LYNX Blue Line Stops Prov iden LYNX Blue Line Extension LYNX Blue Line Extension Stops Community College, Presbyterian t ce Rd om Dr S Freed ad YNX Blue Line LYNX Red Line he re L Novant Health Medical Center, o

and small businesses near the W 7/15 alignment. The Gold Line connects with all current and future rapid transit704-336-RIDE lines. (7433) • www.ridetransit.org

Construction of Phase I was impacted by weather and some track work being outside of tolerance. Although the tracks did meet safety requirements and posed no safety issues, it could have impacted the overall ride quality for our customers. The contractor added additional crews to get back on schedule however, the project did not meet our initial implementation date. Work progressed throughout the spring and summer to get back on schedule with special track work pieces installed to allow the vehicles to turn around at each end and to make turns along the alignment. With 44 panels of art glass installed at the 11 streetcar shelters. These shelters, which honor memories specific to the Queen City, were created by artist Nancy O’Neil. Her carefully crafted collages of photographs, maps, manuscripts and other materials are encapsulated in the glass windscreens of each shelter.

Phase II of the CityLYNX Gold Line Phase 2 is earmarked in President Obama’s budget to receive $75 million in Small Starts Funding. This represents the 50 percent federal share for the extension with the City of Charlotte funding the remaining $75 million local share. Phase II adds 11 more stops, extending the line by 2.5 mile, and will extend the service west two miles from Time Warner Cable Arena to French Street and east one-half mile along Hawthrone Lane from Novant Health Presbyterian Medical Center to Sunnyside Ave. This phase of the project includes modern streetcar vehicles. Anticipated completion date for Phase II is 2019.

17 LYNX Red Line The LYNX Red Line is a proposed North Corridor commuter rail line connecting Uptown Charlotte to the towns north of Charlotte between Huntersville and Mooresville. In 2010, the MTC established the Red Line Task Force as a standing committee to focus on determining alternative means to finance this project. In June 2014, the Red Line Task Force received a white paper, created by the North Carolina Department of Transportation (NCDOT) and CATS, that overviews the Red Line project and the challenges it faces in light of passenger rail policy changes from Norfolk Southern (NS). The current main line corridor is owned by the North Carolina Railroad (NCRR) and leased by NS.

18 LYNX Silver Line The Southeast Corridor is one of the five rapid transit corridors in the 2030 Transit Corridor System Plan. Originally designated as bus rapid transit that preserved the option of migrating to light rail, a recent study by the Urban Land Institute has proposed an alternative. The Southeast Corridor/LYNX Silver Line transit study began in February 2015. The study area will review the 13.5 miles from Charlotte’s Center City to the border of Mecklenburg and Union County, including the town of Matthews. CATS’ is currently reviewing the corridor with the following goals in mind:

• Define a fixed rail guideway alignment (not in the median of Independence Boulevard.) that serves future transportation needs and promotes the land use plans/polices of both the Independence Boulevard Area Plan and the Town of Matthews.

• Provide an interim bus transit strategy that utilizes the future managed lanes proposed on Independence Boulevard.

• Coordinate with land development strategies to protect and preserve the fixed guideway alignment.

The study is anticipated to be complete by the end of June 2016.

19 THE FUTURE IS NOW

Charlotte is one of the fastest-growing cities in the country, and every day more and more people and businesses are moving here to enjoy our weather, economy, sports, culture and fun. As we stay busy shaping tomorrow, we never forget the positive impact rapid transit choices have on the quality of life, job creation and long-term potential for development. We’re running harder and smarter than ever, and our future has never looked so bright.

20 FAST FACTS

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Revenue Hours 960,450 1,021,623 1,034,940 997,733 994,220 1,023,299 959,821 996,087 1,039,456 Revenue Miles 15,542,847 16,689,718 17,013,729 15,711,422 15,724,863 15,243,190 15,853,115 15,823,468 15,429,461 Employees 365 377 377* 351 345 331 330 357 394 Ridership 19,757,737 23,199,350 26,034,078 24,355,191 24,897,096 26,499,765 26,099,311 25,585,748 25,649,942 Fleet Forty-Foot Buses 173 181 161 169 169 164 163 164 164 Over the Road Buses 91 91 102 91 91 91 91 91 102 Shuttle Buses 42 50 41 43 43 48 48 55 40 Trolley Buses 20 20 20 20 20 20 14 10 10 Paratransit Shuttles/Vans 93 84 84 84 85 87 85 86 92 Vanpool Vans 93 101 81 71 99 99 99 99 98 Light Rail/Vintage Trolley 20 20 20 23 23 23 23 23 27 Fleet Total 532 547 509 501 530 532 523 528 533

Wheelchair Accessible Fleet 100% Services Local Bus Routes 38 Express Bus Routes 18 Neighborhood/Community Shuttle Routes 16 Vanpools 67 Light Rail Lines 1 Fares Local/LYNX $2.20 Express $3.00 Express Plus $4.40 Neighborhood/Community Shuttle $.90 Stops Bus Stops 3300 Park and Ride Lots 49 Facilities Transit Centers 4 Bus Facilities 2 Rail Facilities 1

21 FINANCIAL SUMMARY

In FY2015 CATS continued to fulfill its mission of providing outstanding community-wide public transportation services to 25.5 million passengers while proactively contributing to focused growth through advancement of the LYNX Blue Line Extension project and sustainable regional development.

FY2015 Financial Highlights • Through a proactive fuel purchasing approach, successfully managed fuel cost in a volatile fuel market: budgeted $3.25, actual cost $2.63.

• A successful Triennial Review was conducted by the FTA. CATS received a perfect review with zero deficiencies in any of the 17 business areas of review.

• CATS exceeded all of the Financial Performance Objectives in FY2015. Achievements in the cost of service per revenue hour are noteworthy. - Bus: $90.18 - STS: $61.45 - Vanpool: $19.63 - Rail: $153.65

22 OPERATING CAPITAL Operating Income Operating Income of $149.3 million increased 5 percent over FY2014. This is due to an increase in sales tax receipts, a 3 percent escalation on the Maintenance of Effort, and increased fare revenues.

SALES TAX (MILLIONS)

$80 $70 $60 $50 $40 $30 $20 $10 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Operating Expense With an unaudited annual Operating Cost of $116.2 million for FY2015, CATS continues to meet the challenge of effectively balancing the demands of rising costs of operating and lower than expected revenues.

INCOME & EXPENSES (MILLIONS) Fiscal Year FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Operating Income $112.3 $114.3 $124.9 $130.5 $122.8 $149.3

Operating Expense $103.9 $99.0 $105.2 $105.8 $108.6 $116.1

23 SUMMARY OF 2015 OPERATING AND CAPITAL FUNDS OPERATING OPERATING REVENUE FY15 Sales Tax Operating Allocation $58,996,838 Fares 28,681,001 Maintenance of Effort 19,732,069 Service Reimbursements 3,770,896 Funding Partners 11,944,823 Other Miscellaneous 2,125,038 TOTAL OPERATING REVENUES $125,250,665

OPERATING EXPENSE FY15 Transportation Services $108,255,736 Transit Development 244,530 Marketing & Technology 1,515,879 Executive & Administration 6,195,327 TOTAL OPERATING EXPENSES $116,211,472

CAPITAL FUNDS SOURCES OF CAPITAL REVENUE FY15 Federal Grant Revenues 81% State Grant Revenues 11% Local Transit Funds 7% Other Capital Revenue 1% TOTAL CAPITAL REVENUES 100%

CAPITAL EXPENSES FY15 Bus Equipment & Facilities $17,424,042 Rapid Transit Development 234,458,595 Other Capital Expenses 6,105,962 TOTAL CAPITAL EXPENSES $257,988,599

Capital Expenses are largely related to advancing the Blue Line Extenstion and Facilities & Equipment projects. 24 CAPITAL PROGRAM Other Capital Revenue 1% Local Transit Funds Capital Income 7% Federal Grants Capital income consist mostly of federal grant assistance 81% with local and state matches to fund portions of the capital State Grants program. 11%

Capital Expense Capital expenditures of $258 million are largely related to advancing the Blue Line Extension and Facilities & Equipment projects. FY2015 CAPITAL INCOME

Other Capital Expenses $6

Bus Equipment/ Facilities $17 Rapid Transit Development $235

FY2015 CAPITAL EXPENSES (MILLIONS)

25 VISION

A steadily increasing share of transit competitive travel markets in the Charlotte region choose to use public transportation on a regular basis.

The citizens of the region value public transportation as an important public service, which benefits the community as a whole by consistently providing exemplary service that meets diverse individual needs.

Public transportation employees are seen and see themselves as committed, competent and motivated professionals of the region’s premier public service.

CATS is recognized both locally and nationally for its contribution to effective and innovative regional growth that is community focused and sustainable.

GOALS

CUSTOMER SERVICE FOCUS Provide safe, high-quality transportation services to all customers and support our employees in that endeavor.

SYSTEM DEVELOPMENT Expand and enhance public transportation services to retain current customers and attract new ones by providing services that meet customer and community needs while supporting transit-oriented and pedestrian-friendly land use patterns.

FISCAL RESPONSIBILITY Ensure cost-effective, efficient and responsible use of resources and aggressively pursue funding partnerships to supplement local resources.

COMMUNITY BENEFITS Provide social, economic and environmental benefits to the community through system operations and improvements, and promote community awareness of these contributions.

PREPARE FOR THE FUTURE Pursue process improvements, business practices, and technologies that will support cost-effective and customer-friendly service delivery in the future.

INVEST IN EMPLOYEES Provide training and career development support that enhances employees’ ability to perform their jobs and be prepared for promotional opportunities.

26 600 East Fourth Street Charlotte, NC 28202

704-336-RIDE (7433) or 866-779-CATS (2287) wwww.ridetransit.org